08/06/2020 (The Edge Markets), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Wednesday as the lifting of Indonesia’s palm oil export ban continued to put pressure on Malaysia’s CPO demand and prices, a dealer said.

Palm oil trader David Ng said the demand for Malaysia’s palm oil would likely be adversely affected with Indonesia’s supply coming onstream.

“Hence, we locate support at RM6,200 a tonne and resistance at RM6,700 a tonne,” he told Bernama.

Indonesia halted exports of palm oil products on April 28 in an effort to control the increase in prices in the country and resumed exports from May 23 onwards.

At the close, CPO futures contract for spot month June 2022 dipped RM20 to RM6,740 a tonne, July 2022 decreased RM27 to RM6,697 a tonne, August 2022 slid RM41 to RM6,467 a tonne, September 2022 was lower by RM21 to RM6,300 a tonne, October 2022 shed RM12 to RM6,203 a tonne, and November 2022 fell RM14 to RM6,153 a tonne.

Total volume climbed to 60,720 lots from Tuesday’s close of 47,924 lots while open interest rose to 268,647 contracts from 252,541 contracts previously.

The physical CPO price for June South was unchanged at RM6,850 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-end-lower-6